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Public Act 92-0700
HB5839 Enrolled LRB9214017JSpc
AN ACT concerning financial institutions.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Savings and Loan Act of 1985 is
amended by changing Section 7-19.1 as follows:
(205 ILCS 105/7-19.1) (from Ch. 17, par. 3307-19.1)
Sec. 7-19.1. Savings and Residential Finance Regulatory
Fund.
(a) The aggregate of all fees collected by the
Commissioner under this Act shall be paid promptly after
receipt of the same, accompanied by a detailed statement
thereof, into the State treasury and shall be set apart in
the Savings and Residential Finance Regulatory Fund, a
special fund hereby created in the State treasury. The
amounts deposited into the Fund shall be used for the
ordinary and contingent expenses of the Office of Banks and
Real Estate. Nothing in this Act shall prevent continuing
the practice of paying expenses involving salaries,
retirement, social security, and State-paid insurance of
State officers by appropriation from the General Revenue
Fund.
(b) Moneys in the Savings and Residential Finance
Regulatory Fund may not be appropriated, assigned, or
transferred to another State fund. The moneys in the Fund
shall be for the sole benefit of the institutions assessed.
(c) All earnings received from investments of funds in
the Savings and Residential Finance Regulatory Fund shall be
deposited into the Savings and Residential Finance Regulatory
Fund and may be used for the same purposes as fees deposited
into that Fund.
(Source: P.A. 88-579, eff. 8-12-94; 89-508, eff. 7-3-96.)
Section 10. The Savings Bank Act is amended by changing
Section 6013 as follows:
(205 ILCS 205/6013) (from Ch. 17, par. 7306-13)
Sec. 6013. Loans to one borrower.
(a) Except as provided in subsection (c), the total
loans and extensions of credit, both direct and indirect, by
a savings bank to any person, other than a municipal
corporation for money borrowed, outstanding at one time shall
not exceed 25% 20% of the savings bank's total capital plus
general loan loss reserves.
(b) Except as provided in subsection (c), the total
loans and extensions of credit, both direct and indirect, by
a savings bank to any person outstanding at one time and at
least 100% secured by readily marketable collateral having a
market value, as determined by reliable and continuously
available price quotations, shall not exceed 10% of the
savings bank's total capital plus general loan loss reserves.
This limitation shall be separate from and in addition to the
limitation contained in subsection (a).
(c) If the limit under subsection (a) or (b) on total
loans to one borrower is less than $500,000, a savings bank
that meets its minimum capital requirement under this Act may
have loan and extensions of credit, both direct and indirect,
outstanding to any person at one time not to exceed $500,000.
With the prior written approval of the Commissioner, a
savings bank that has capital in excess of 6% of assets may
make loans and extensions of credit to one borrower for the
development of residential housing properties, located or to
be located in this State, not to exceed 30% of the savings
bank's total capital plus general loan loss reserves.
(d) For purposes of this Section, the term "person"
shall be deemed to include an individual, firm, corporation,
business trust, partnership, trust, estate, association,
joint venture, pool, syndicate, sole proprietorship,
unincorporated association, any political subdivision, or any
similar entity or organization.
(e) For the purposes of this Section any loan or
extension of credit granted to one person, the proceeds of
which are used for the direct benefit of a second person,
shall be deemed a loan or extension of credit to the second
person as well as the first person. In addition, a loan or
extension of credit to one person shall be deemed a loan or
extension of credit to others when a common enterprise exists
between the first person and such other persons.
(f) For the purposes of this Section, the total
liabilities of a firm, partnership, pool, syndicate, or joint
venture shall include the liabilities of the members of the
entity.
(g) For the purposes of this Section, the term "readily
marketable collateral" means financial instruments or bullion
that are salable under ordinary circumstances with reasonable
promptness at a fair market value on an auction or a
similarly available daily bid-and-ask price market.
"Financial instruments" include stocks, bonds, notes,
debentures traded on a national exchange or over the counter,
commercial paper, negotiable certificates of deposit,
bankers' acceptances, and shares in money market or mutual
funds.
(h) Each savings bank shall institute adequate
procedures to ensure that collateral fully secures the
outstanding loan or extension of credit at all times.
(i) If collateral values fall below 100% of the
outstanding loan or extension of credit to the extent that
the loan or extension of credit no longer is in conformance
with subsection (b) and exceeds the 25% 20% limitation of
subsection (a), the loan must be brought into conformance
with this Section within 5 business days except where
judicial proceedings or other similar extraordinary
occurrences prevent the savings bank from taking action.
(j) This Section shall not apply to loans or extensions
of credit to the United States of America or its agencies or
this State or its agencies or to any loan, investment, or
extension of credit made pursuant to Section 6003 of this
Act.
(k) This Section does not apply to the obligations as
endorser, whether with or without recourse, or as guarantor,
whether conditional or unconditional, of negotiable or
nonnegotiable installment consumer paper of the person
transferring the same if the bank's files or the knowledge of
its officers of the financial condition of each maker of
those obligations is reasonably adequate and if an officer of
the bank, designated for that purpose by the board of
directors of the bank, certifies that the responsibility of
each maker of the obligations has been evaluated and that the
bank is relying primarily upon each maker for the payment of
the obligations. The certification shall be in writing and
shall be retained as part of the records of the bank.
(l) The Commissioner may prescribe rules to carry out
the purposes of this Section and to establish limits or
requirements other than those specified in this Section for
particular types of loans and extensions of credit.
(Source: P.A. 92-483, eff. 8-23-01.)
Section 99. Effective date. This Act takes effect upon
becoming law.
Passed in the General Assembly May 08, 2002.
Approved July 19, 2002.
Effective July 19, 2002.
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